[WSBARP] Tax Sale

[Patrick McDonald]

The tax sale would eliminate your client’s deed of trust. All that would be left is an unsecured claim against the foreclosed owner. I don’t believe there is a right of redemption other than the U.S. government if it has a lien against the property. Any surplus funds generated from the tax sale would go to the foreclosed owner and not junior lienholders such as your client. 

I don’t know what the value of the property is or if there are other liens and what their relative priorities are. Your client may want to consider paying off the taxes prior to the sale. I assume there’s a provision in the deed of trust that allows the payment to be added to the note. 

Patrick McDonald
________________________
Pody & McDonald, PLLC
1200 Fifth Avenue, Suite 1410
Seattle, WA 98101-3106
T: 206-467-1559
F: 206-467-4489



On Jul 24, 2015, at 8:34 AM, Jim Doran <jim at DORANLEGAL.COM> wrote:

> Listies:
>  
> I have dealt with HOA line foreclosure Sheriff’s Sales but never a county property tax sale.
>  
> Client has a Note and DOT with a balance of $15,000 +/-on it.  The deadbeat is about $4,000 behind on payments and is behind $8,000 +/- on real property taxes and this October if the taxes are not paid, at least in part, there will be a tax auction.
>  
> If someone buys the property at the County Tax Sale (I presume conducted by the Sheriff) do they take the property subject to my clients Note and DOT?  Does the deadbeat have a right of redemption for one year?
>  
> Can my client buy the place at the Tax Sale and get rid of the deadbeat?  Since client will have to pay the property taxes anyway if he forecloses, can he use the County Tax Sale as a way to get rid of the deadbeat.  If the client buys the property at the Tax Sale he takes it subject to his own Note and DOT which is fine.  If the deadbeat wants to redeem the property he will have to pay my client.  How can my client lose?
>  
> What am I missing here?  (I am sure that I am missing something.)
>  
> James R. Doran
> Attorney at Law
> 100 E. Pine Street – Suite 205
> Bellingham, WA 98225
> (360)393-9506
> jim at doranlegal.com
> www.doranlegal.com
>  
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